Subsidy not long-term solution: CM

Tribune News Service

New Delhi, December 18

Realising the challenges of a subsidy model, Chief Minister Arvind Kejriwal on Tuesday appealed to the industry and private stakeholders to invest in research on electric vehicles to make it "affordable" with time as seen in usage of “solar energy” in the national capital.

“Subsidy cannot be a long-term solution,” Kejriwal said while addressing a stakeholders’ consultation on the draft “Delhi Electric Vehicle Policy” today here.

On the array of subsidies on e-autos, rickshaws, taxis/cabs and two-wheelers, among others, in the draft policy on electric vehicle, Kejriwal said the subsidies are for only an initial push to promote the use of electric vehicles in the city and asked the industry stakeholders to work on technology to ensure the transition to electric vehicles turns out to be a success.

Noting that stepping up usage of public transport would be a major step towards controlling air pollution in the national capital, the Chief Minister said his government has the political will to take tough decisions to curb pollution.

“Odd-even was a very difficult experiment and is generally executed in emergency conditions. When we decided to implement it, the pollution level in the city was quite high.... people too cooperated. When the Metro was introduced, people started using it and it went on to contribute immensely being a very comfortable and efficient mode of transport,” Kejriwal said.

The government will procure 3,000 buses, out of which 1,000 would be electric buses — a scale said to be first for any city in the country, said Kejriwal adding that if the pilot lot turns out to be economically viable, the government will henceforth buy only e-buses.

Pointing out that there wound several challenges, administrative, legal, charging infrastructure, the Chief Minister asserted “electric vehicles” is the future not for India alone, but for the entire world.

The proposed policy, which targets 25 per cent of all vehicle registrations to be electric by 2023, provides subsidy up to Rs 22,000 on purchase of e-two wheelers to ensure their cost is less than or equal to petrol two wheelers and up to Rs 20,000 subsidy and five per cent interest subvention to e-rickshaw owners.

Similar benefits have been recommended when it comes to e-autos that will have open permit system and individual e-auto owners can avail a subsidy of up to Rs 12,500 and 5 per cent interest subvention in the city under the policy.